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Pensioners' Incomes
Mr. Bowden : To ask the Secretary of State for Social Security what proportion of (a) single pensioners and b) pensioner couples had incomes below one half of average household income each year since 1979.
Mr. Hague : An answer covering each year since 1979 could be supplied only at disproportionate cost. The available information is published in tables F1(BHC) and F1(AFC) of "Households Below Average Income 1979-1990/91", copies of which are in the Library.
Mr. Bowden : To ask the Secretary of State for Social Security what was the average gross weekly income of (a) single pensioners and (b) pensioner couples in the lastest year for which figures are available ; and what has been the average growth in income of each group since 1979. Mr. Hague : In 1990-91, information from the family expenditure survey shows that the average gross weekly income of (a) single pensioners was £110.20 and (b) pensioner couples was £214.80. This represents an average growth in income since 1979 of (a) 42 per cent. for single pensioners and (b) 41 per cent. for pensioner couples.
Note 1 : Pensioner couples are couples where the husband is over state pension age.
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Mr. Bowden : To ask the Secretary of State for Social Security what proportion of pensioners received at least 50 per cent. of their income from state benefits in the latest year for which figures are available.
Mr. Hague : The percentage of pensioners receiving 50 per cent. or more of their income from state benefits is as follows :
Pensioner couples : 61 per cent.
Single pensioners : 76 per cent.
All pensioners : 70 per cent.
Source : Information from combined 1990 and 1991 Family Expenditure Surveys covering period 1990-91.
Note 1 : "Pensioner couples" are couples where the husband is over state pension age.
Note 2 : "All pensioners" are single people over state pension age and couples where the husband is over state pension age.
Mr. Bowden : To ask the Secretary of State for Social Security what was the value of the basic state retirement pension for (a) a single pensioner and (b) a pensioner couple in 1979 and at each uprating since 1979 ; and what it would have been if it had been uprated in line with whichever was the higher of average earnings or prices.
Mr. Hague : The information is in the table.
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Rate of basic retirement pension
Actual rates If increased by
the higher of
earnings/prices
|Single £ per week|Couple £ per week|Single £ per week|Couple £ per week
------------------------------------------------------------------------------------------------------------
November 1979 |23.30 |37.30 |- |-
November 1980 |27.15 |43.45 |27.60 |44.20
November 1981 |29.60 |47.35 |30.90 |49.50
November 1982 |32.85 |52.55 |33.50 |53.65
November 1983 |34.05 |54.50 |36.40 |58.30
November 1984 |35.80 |57.30 |38.25 |61.25
November 1985 |38.30 |61.30 |41.60 |66.60
July 1986 |38.70 |61.95 |43.45 |69.55
April 1987 |39.50 |63.25 |45.90 |73.45
April 1988 |41.15 |65.90 |49.50 |79.20
April 1989 |43.60 |69.80 |54.15 |86.65
April 1990 |46.90 |75.10 |59.40 |95.05
April 1991 |52.00 |83.25 |65.85 |105.40
April 1992 |54.15 |86.70 |71.05 |113.70
April 1993 |56.10 |89.80 |74.55 |119.30
Mr. Bowden : To ask the Secretary of State for Social Security how much the state pension for (a) single pensioners and (b) pensioner couples would have been in April had the pension been uprated in line with the higher of retail prices index or earnings since 1980.
Mr. Hague : (a) £74.55 for single pensioners and (b) £119.30 for pensioner couples at April 1993.
Mr. Bowden : To ask the Secretary of State for Social Security what is his best estimate of the number and
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proportion of (a) single pensioners and (b) pensioner couples who have total gross weekly incomes of (i) £0 to £50, (ii) £50 to £100, (iii) £100 to £150, (iv) £150 to £200, (v) £200 to £250, (vi) £250 to £300, (vii) £300 to £350, (viii) £350 to £400, (ix) £400 to £450, (x) £450 to £500 and (xi) £500 and above.Mr. Hague : The information is in the tables. To allow a reliable number of sample cases to be taken into account certain ranges of the distribution have been merged in order to ensure estimates are based on at least 100 cases. The estimates are liable to error.
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Thousands
£ per week |Up to 100 |100-150 |150-200 |200-250 |250-350 |Over 350
----------------------------------------------------------------------------------------
Pensioner couples
Number |285 |9,655 |470 |309 |270 |318
Pensioner Couples-Proportions
Percentage |11 |37 |18 |12 |10 |12
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Thousands £ per week |Up to 100 |100-150 |150-200 |200-300 |Over 300 ----------------------------------------------------------------------------- Single Pensioners Number |3,023 |692 |296 |233 |173 Percentage |68 |16 |7 |5 |4 Note: Numbers are rounded to the nearest thousand. Source: Combined 1990 and 1991 Family Expenditure Surveys.
Mr. Bowden : To ask the Secretary of State for Social Security what was (a) the mean and (b) the median income of (i) single pensioners and (ii) pensioner couples, before and after housing costs, in 1990-91.
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Mr. Hague : The information is in the table.
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Mean net income £ Median net income
per week £ per week
|Single pensioners|Pensioner couples|Single pensioners|Pensioner couples
---------------------------------------------------------------------------------------------------------------
Before Housing costs |94.80 |181.20 |75.20 |138.60
After Housing costs |82.50 |170.90 |54.40 |123.20
Note: Pensioner couples consist of couples where the husband is over state pension age.
Source: Combined 1990 and 1991 Family Expenditure Surveys covering period 1990-91.
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Family Credit
19. Mr. Riddick : To ask the Secretary of State for Social Security what is the annual spending on family credit, and what was the spending on family income supplement in 1979.
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Mr. Burt : Family credit expenditure is expected to be £965 million in 1993-94. This is 14 times more in real terms than the Social Security what measures his Department is taking to encourage local authorities to stop fraudulent claims of housing benefit.
Mr. Burt : My right hon. Friend the Secretary of State has recently announced improved incentives which will encourage local authorities to increase their efforts against fraud. Local authorities will now be able to share to a greater extent in the savings produced through the detection of fraud. Subsidy reductions, next year, will be targeted at authorities that do little or nothing to uncover fraud.
Mr. Harry Greenway : To ask the Secretary of State for Social Security how much was paid in housing benefit (a) nationally and (b) in the London borough of Ealing in each of the past three years ; and if he will make a statement.
Mr. Burt : The available information is in the table.
T
|Housing benefit paid|Housing benefit paid
|nationally |in the London
|borough of Ealing
|£ million |£ million
------------------------------------------------------------------------------------
1989-90 |n/a |36
1990-91 |4,941 |42
1991-92 |6,058 |69
1992-93 |<1>7,348 |Not yet available
<1>Estimated outturn.
Personal Pensions
23. Mrs. Browning : To ask the Secretary of State for Social Security what assessment he has made of the results of his Department's policies to encourage personal pensions.
Mr. Hague : The Government are committed to encouraging choice and flexibility in pension provision, and has already introduced two new options for contracting out of the state earnings-related pension scheme-- appropriate personal pensions and contracted-out money purchase occupational pension schemes. It is clear that individuals wish to take advantage of the choices available to make provision for their own retirement--more than 5 million people have used personal pensions to contract out of the state earnings-related scheme since the option was introduced in 1988. A 1 per cent. additional rebate for appropriate personal pension holders aged 30 and over was introduced from April 1993, fulfilling our manifesto commitment and ensuring that personal pension holders continue to find it worth while to maintain their pensions. The Government are considering measures to ensure that personal pensions remain attractive across the age range.
Lone Parents
24. Mr. Gordon Prentice : To ask the Secretary of State for Social Security what plans he has to give additional support to lone mothers and lone fathers.
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Mr. Burt : We have already improved the incentives to work in the social security system so that lone parents are currently £30 a week better off in work and receiving family credit than out of work and on income support.
From October 1994, we will provide additional support for both lone parents and couples through a £40 disregard of child care costs. This will provide a powerful incentive for families to move back into work with family credit and make themselves better off.
Mr. Tony Banks : To ask the Secretary of State for Social Security what proposals he has to give greater support to single parent families.
Mr. Lilley : We have already improved the incentives to work in the social security system so that lone parents are currently £30 a week better off in work and receiving family credit than out of work and on income support.
From October 1994, we will provide additional support for both lone parents and couples through a £40 disregard of child care costs. This will provide a powerful incentive for families to move back into work with family credit and make themselves better off.
Maxwell Pensions Unit
25. Mr. Lidington : To ask the Secretary of State for Social Security if he will make a further statement on the work of the Maxwell pensions unit.
Mr. Hague : In addition to its continuing work with those engaged in the recovery of pension scheme assets, the unit is providing substantial administrative assistance to the Maxwell Pensioners Trust. The Government fully support the trust's initiative to promote an overall settlement of disputes relating to missing Maxwell scheme assets as an alternative to prolonged and costly litigation.
Benefit Fraud
26. Mrs. Angela Knight : To ask the Secretary of State for Social Security what progress his Department has taken to reduce the level of fraudulent claims for social security benefits.
Mr. Scott : We are placing a greater emphasis on fraud prevention by increasing staff training and making more use of information technology. A range of other initiatives currently under way include a one-stop service, research into strengthening identity requirements and better verification details for claims and payments of benefits. Last year, our investigators caught more than 270,000 people cheating the system, making record savings of £558 million.
Social Security Expenditure
27. Mr. Kirkwood : To ask the Secretary of State for Social Security what research he has commissioned into the long-term levels of resources to be devoted to social security expenditure by his Department ; and if he will make a statement.
Mr. Hague : The Department has an active research programme, drawing on internal and external research. The results of the most recent research were published in July in the Department's report "The Growth of Social Security", which was intended to stimulate and inform public debate on the social security programme.
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Invalidity Benefit
30. Mr. Roy Hughes : To ask the Secretary of State for Social Security what changes he proposes to the payment of invalidity benefit.
Mr. Scott : I refer the hon. Gentleman to the statement my right hon. Friend the Secretary of State made to the House on 1 December, Official Report, column 1037.
Mr. Foulkes : To ask the Secretary of State for Social Security what is the effect of the assessment he has made of proposed changes in invalidity benefit and pension age on the appeal against the social security commissioners' decision which concerned the IVB rules linked to state pension age.
Mr. Scott : The appeal has been listed for hearing by the Court of Appeal on either 14 or 15 February 1994. The proposals which my right hon. Friend the Secretary of State announced on 1 December 1993 do not affect the decision to proceed with this appeal.
Pensioners' Benefits
Mr. Hawkins : To ask the Secretary of State for Social Security by how much more than inflation benefits for poor pensioners have been increased since 1989.
Mr. Hague : The total extra help above normal upratings made available to pensioners on income-related benefits since 1989 is now worth around £1 billion a year.
State Earnings-related Pension Scheme
Mr. Pike : To ask the Secretary of State for Social Security what is the number of people (a) male and (b) female covered by SERPS ; and what percentage of the work force this is in each case.
Mr. Hague : The answer is in the table.
T
|<1>Number (millions)|<2>Percentage of
|work force
------------------------------------------------------------------------------------
Total |9.7 |43.7
All men |4.5 |38.8
All women |5.2 |49.1
<1>Source: 1 per cent. sample of National Insurance contributors.
<2>Source: Labour Force Survey-Employment Gazette. United Kingdom 1990-91 (
excluding self-employed persons, Her Majesty's Forces and persons on work related
government training schemes).
The figures are based on the number of people who paid class 1 contributions at the not-contracted out rate ; excluding those people with appropriate personal pensions.
Mr. Bates : To ask the Secretary of State for Social Security (1) how many men with earnings above the lower earnings limit were not contracted out of SERPS during the latest year for which figures are available ;
(2) how many women with earnings above the lower earnings limit were not contracted out of SERPs during the latest year for which figures are available.
Mr. Hague : In 1990-91, the numbers of (a) men, and (b) women, in the United Kingdom who paid class 1 national insurance contributions and were not contracted
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out of SERPS, or were not holders of an appropriate personal pension in place of SERPS, were (a) 4.54 million and (b) 5.25 million.Source : 1 per cent. sample of National Insurance contributors.
Disabled Children
Mr. Jon Owen Jones : To ask the Secretary of State for Social Security what proposals he has to increase benefits for families of children with disabilities.
Mr. Scott : Families with disabled children have access to a wide range of social security benefits, including, for example, invalid care allowance, disability living allowance and child benefit. On 1 December 1993 my right hon. Friend the Secretary of State announced that all major benefits would be increased in April 1994 fully in line with inflation, with additional help to meet the cost of VAT on fuel for more than 15 million people.
Brain Damage
Miss Lestor : To ask the Secretary of State for Social Security how many awards have been made under the Vaccine Damage Act 1979 for brain damage sustained in each year between 1976 and 1992 ; and how many of these awards were for damage following injections of triple and/or pertussis vaccines.
Mr. Hague : The information requested is not readily available and could be obtained only at disproportionate cost.
Social Fund Commissioner
Mr. Streeter : To ask the Secretary of State for Social Security what decision he has made about the appointment of a new social fund commissioner ; and if he will make a statement.
Mr. Scott : I am pleased to announce that Mrs. Rosalind Mackworth has agreed to serve as the Social Fund Commissioner for Great Britain for a further period of 18 months from 1 December 1993. I understand that Mrs. Mackworth has also agreed to act as Social Fund Commissioner for Northern Ireland.
Since taking up the post of Social Fund Commissioner in December 1987, Mrs. Mackworth has been instrumental in establishing the social fund inspectorate as a respected and independent source of review. I am sure that I can rely on Mrs. Mackworth to maintain and even improve upon her excellent record.
Pensions
Mr. Denham : To ask the Secretary of State for Social Security what action he is taking to ensure that those choosing to opt out of the state earnings-related pension are informed of the risks to their pension due to the loss of the guaranteed returns offered by SERPS.
Mr. Hague : Some 15 million people are contracted out of the state earnings-related pension schemes--SERPS. Around 10 million of these are members of their employer's pension scheme and 5 million have a personal pension. Members of salary-related occupational schemes will receive a guaranteed minimum pension--GMP--at state pension age from their employers, provided as a condition of contracting-out of SERPS. There is no risk that an individual's pension entitlement will be lower than that offered within SERPS.
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Individuals with a personal pension build up their own fund based on contributions made by themselves, their employer and the Government. The Government's contribution reflects the level of investment required to provide a pension equivalent to a GMP. These contributions and the return on their investment form "protected rights" guaranteeing a minimum value for the fund. An occupational money purchase scheme works in a similar way with the Government's contribution being provided through a rebate in the amount of national insurance contributions payable.Mr. Denham : To ask the Secretary of State for Social Security what action he is taking to monitor the performance of the investment funds associated with the personal pension plans of those who have opted out of SERPS ; and if he will make a statement.
Mr. Hague : It is for individual scheme members, in conjunction with their financial advisers, to monitor the performance of their chosen pension scheme. In order to help them to do so, the trustees of personal pension schemes are required to provide to members, at least once in every period of 12 months, written details of the value of the member's protected rights under the scheme and the value of the member's accrued rights, other than protected rights.
Mr. Denham : To ask the Secretary of State for Social Security (1) what is his estimate of the number of those taking out personal pensions and who (a) have and (b) have not opted out of SERPS who have allowed their policy to lapse after (i) one year, (ii) two years, (iii) three years, (iv) four years and (v) five years ;
(2) what is his estimate of the total sum lost by policy holders who have allowed personal pension plans to lapse (a) after one year, (b) after two years, (c) after three years, (d) after four years, (e) after five years and (f) in total.
Mr. Hague : Personal pensions used for opting out of SERPS do not lapse. Membership continues until cancelled either by the individual concerned or by the trustees or managers of the scheme. Personal pensions not used for opting out of SERPS become paid up when the member ceases to make payments into the scheme. In both cases, those contributions which have already been paid into the schemes continue to be invested to produce benefits for the contributor.
Mr. Denham : To ask the Secretary of State for Social Security (1) what is his estimate of the total sum charged in commission on the personal pension plans of those who have opted out of SERPS and who make additional contributions to their plans for the last year for which figures are available ;
(2) what is his estimate of the total sum charged in commission on the personal pension plans of those who have not opted out of SERPS for the last year for which figures are available ;
(3) what is his estimate of the total sum of charges other than commission made on the personal pension plans of those who have opted out of SERPS and who make additional contributions to their plans for the last year for which figures are available ;
(4) what is his estimate of the total sum of charges other than commission made on the personal pension plans of those who have not opted out of SERPS for the last year for which figures are available.
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Mr. Hague : The data requested are not collected. Consideration of the level of charges and commissions associated with personal pensions is a matter for individual investors in their choice of scheme. The Financial Services Act 1986 governs the disclosure to investors of charges and commissions associated with life insurance based products. My right hon. and learned Friend the Chancellor of the Exchequer has recently directed the Securities and Investments Board to come forward with new rules and proposals to make the costs associated with life insurance based investment products, including most personal pensions, more transparent.
Mr. Denham : To ask the Secretary of State for Social Security (1) what is his estimate of the total sum charged in commission on appropriate pension plans for the last year for which figures are available ;
(2) what is his estimate of the total sum of charges other than commission made on appropriate pension plans for the last year for which figures are available.
Mr. Hague : The data requested are not collected.
Mr. Denham : To ask the Secretary of State for Social Security what action he is taking to ensure that the state earnings-related pension can operate in such a way as to provide an alternative to private provision for those who wish to make full provision for their retirement.
Mr. Hague : The state earnings-related pension is already one of several alternatives available to individuals choosing how best to make provision for their retirement.
Benefit Statistics
Sir Ralph Howell : To ask the Secretary of State for Social Security what will be the saving in the whole range of social security benefits, including exemption from prescription charges and other associated benefits, if everybody was deemed to have earned £100 per week between the ages of 18 to 65 years who was fit and able to work.
Mr. Scott : I shall let my hon. Friend have such information as is available as soon as possible.
Income Support
Mr. Tony Banks : To ask the Secretary of State for Social Security how many people received income support transitional protection in 1988 in (a) Newham and (b) nationally ; how many in each of the same areas received no income support increase due to transitional protection in each successive year ; and how many of these had (i) pensioner premia and (ii) disability premium.
Mr. Burt : The figures for those receiving income support transitional addition in Great Britain are in table 1. It is not possible to provide reliable figures for Newham. Those with a transitional addition in May of each year would not have received an increase at the uprating in the April of that year. However, the following increases over and above normal uprating were made available on top of transitional additions :
October 1989--new rate of pensioner premium introduced for those aged 75-79 and special increase in higher pensioner premium--worth £2.50 a week for a single person and £3.50 for a couple.
October 1991--increase in family premium, child personal allowances and under age 25 single personal allowances.
October 1992--all pensioners premiums increased by £2 for a single person and £3 for a couple.
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Table 2 shows the numbers receiving a special transitional addition in Great Britain. All will have benefited from upratings as special transitional additions are increased by the normal uprating factor used for income support.Column 119
]
Table 1
Income Support Claimants in Receipt of a Transitional Addition
|May 1988 |May 1989 |May 1990 |May 1991 |May 1992
---------------------------------------------------------------------------------------------
Total Cases with TA<1> |1,585,000 |497,000 |134,000 |29,000 |10,000
Higher Pensioner Premium |220,000 |73,000 |15,000 |2,000 |Under 1000
Enhanced Pensioner Premium |Nil |Nil |14,000 |1,000 |NIL
Pensioner Premium |491,000 |168,000 |23,000 |2,000 |1,000
Disability Premium |63,000 |27,000 |9,000 |3,000 |1,000
<1> Transitional Addition
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Table 2
Income Support Claimants in Receipt of a Special Transitional Addition
|May 1988 |May 1989 |May 1990 |May 1991 |May 1992
---------------------------------------------------------------------------------------------------
Total Cases with STA<1> |2,000 |2,000 |1,000 |1,000 |1,000
Higher Pensioner Premium |1,000 |1,000 |Under 1,000|Under 1,000|Under 1,000
Enhanced Pensioner Premium |NIL |NIL |NIL |Under 1,000|Under 1,000
Pensioner Premium |Under 1,000|Under 1,000|Under 1,000|NIl |Nil
Disability Premium |Under 1,000|1,000 |Under 1,000|Under 1,000|Under 1,000
<1> Special Transitional Addition
1. Source: Income Support Statistical Enquiries 1988-1992
2. Figures given in both tables are rounded to the nearest thousand
3. Enhanced Pensioner Premium was introduced in October 1989
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